IEC stands for Importer and Exporter code. If any individual or company is indulged in the business of import and export, obtaining IEC code is mandatory. It’s a unique ten-digit code issued by Director General of Foreign Trade, Ministry of Commerce (DGFT).
What is IEC Code in India
According to the Foreign Trade (Development & Regulation) Act, 1992,
The process of integrating trade and commerce throughout the globe is called globalization. It is a process of expansion of business, services, and even technologies around the globe. Before expending the business outside India, one should research the govt. Policies for import and export. One of the related policy for export and import business is obtaining the license from Director General of Foreign Trade. It is a unique ten-digit number, mandatory for bona fide individual or for any company commencing export and import business.
When is IEC Code Required?
- When a shipment needs to get the clearance from custom, the customs authorities will demand the same from an importer.
- During remitting from foreigner creditors, banks also ask for IEC for smooth money transfer.
- Even for receiving the direct foreign currency into bank account exporter needs to provide the IEC to the bank.
When is The IEC Code Not Required?
There are circumstances when you export or import outside India IEC code is not required;
- At the time when government departments are importing or exporting.
- Import and Export by certain notified charitable NGOs.
- If a person Export or Import products for his/her personal use.
What are The Documents Required For Registration of IEC?
Checklist of documents required for IEC Code Registration;
- Self- attested copy of PAN card
- Two copies of passport size photograph duly attested by the respective banker of individual
- Individual Voter Id or Aadhar card
- Cancelled copy of cheque of individual’s /Firm/Company’s Bank Certificate
- Copy of rent agreement or electricity bill of the company
- Board Resolution
What are The Benefits of Registering IEC Code?
- Import Export Code is popularly known as IEC Code, a ten-digit number unique number issued by DGFT
- A person registered with IEC code even can register his /her business for an International online market like Amazon, Alibaba etc.
- Registering for IEC code will help in the expansion of business, and help to reach out to the largest global market.
- There is no such requirement for renewal of IEC, as it last until the entity exists.
- It provides other benefits given by customs, by the Export Promotion Council and Director General of Foreign Trade.
- The process of acquiring the IEC code is very easy and smooth. After filing the application, only the wait time required is for around 10 to 15 days.
Foreign trade policy of India exempts certain categories of importer and exporter from obtaining IEC Code.
- Central Ministries or Departments and State government.
- Those export and import items which are not related to the trade, agriculture or it can be manufacturing items. In other words, we can say personal use products are exempted from acquiring IEC code.
- Those persons who are importing or exporting from and to border areas like Nepal, Myanmar, through Indo – Myanmar border areas and China, provided CIF value of Rs — not exceeding above 25,000 for a single consignment.
- In the case where the consignment is getting imported or exported from Nathula port, the exemption ceiling is Rs.1 lakh. Here this is important to mention that exemption from obtaining IE code is applicable in a case where the products getting imported or exported are Special Chemicals, Organisms, material, types of equipment, and technologies listed in appendix 3 of schedule 2 of ITC HS.
How to Apply For IEC Code Online?
For applying the IEC code, applications are submitted on DGFT Website.
The website provides full information about the list of documents required. The applicant has to follow these steps while making applying online for IEC code.
- The very first information asked is to fill the details of applicant pan card.
- Secondly, enter the applicant name, date of birth/incorporation details against the submitted PAN card.
- Once the PAN card is verified, the next step is to provide applicant’s phone number and email –id for the OTP.
- Further, the applicant will be provided 20 digit ECOM(e-commerce) reference number, as the unique identifier for the application.
- Thereafter, the applicant has to provide information related to the export-import business entity.
- The last is to make the payment, which can be made through any card debit/credit or through net banking.
- Now, the applicant can proceed toward uploading supporting document. The previous information provided the applicant will appear on the window in ANF-2A form.
After the completion of this process applicant will receive an e-IEC certificate. The applicant will receive an Import Export License within 15 days from the date of application.
What are The Documents Required During The Online Filling Of IEC Code?
For filling application online soft copy/ scanned copy of the following documents are required in the format of GIF/PDF
- Photograph, PAN Card and Passport
- Bank Certificate, Sale Deed, Company incorporation certificate
- MOM, AOA, Partnership Deed
- Govt. ID, (voter ID, Adhaar Card, Driving License and cancelled a cheque
What are The Precautions to be Taken While Filling For IEC?
- It’s suggested to not apply for more than one IEC code in India against the same PAN and business.
- Be very specific while providing the information about you and business. The applicant could be punished for providing unlawful and incomplete information.
- It is important to updated business information (if any) once in every year after receiving e-IEC. The update shall be provided via the DGFT website.
Once the IEC code is registered with the government, there is no need to file for its renewal. Owner’s brand receives global exposure and increases product market. For applying IEC code, DGFT has several regional offices in whole of India. The applicant can visit the nearest office and by fulfilling the various conditions for obtaining a license, can apply for the same.